EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As Retail Sales Miss Expectations

Key Insights

• EUR/USD rebounded above 1.0750 level as traders reacted to the weak U.S. Retail Sales report. 
• USD/CAD pulled back amid a broad rebound in commodity markets. 
• USD/JPY did not manage to settle back below the key 150.00 level. 

U.S. Dollar

U.S. Dollar Index pulled back as traders reacted to the disappointing Retail Sales report, which showed that Retail Sales declined by 0.8% month-over-month in January.

In case U.S. Dollar Index settles below the support at 104.35 – 104.55, it will move towards the next support level, which is located in the 103.50 – 103.75 range.

EUR/USD

EUR/USD gains ground as traders react to U.S. economic data. Today, traders also focused on the Initial Jobless Claims report, which showed that 212,000 Americans filed for unemployment benefits in a week.

In case EUR/USD stays above the resistance at 1.0730 – 1.0750, it will move towards the next resistance level at 1.0810 – 1.0830.

GBP/USD

GBP/USD is mostly flat after the release of UK GDP data. UK GDP Growth Rate was -0.3% in the fourth quarter, compared to analyst consensus of -0.1%.

If GBP/USD climbs above the 50 MA at 1.2597, it will head towards the nearest resistance at 1.2650 – 1.2685.

USD/CAD

USD/CAD is losing ground as commodity markets rebound. Other commodity-related currencies are also moving higher in today’s trading session.

A successful test of the support at 1.3480 – 1.3500 will open the way to the test of the next support level at 1.3380 – 1.3410.

USD/JPY

USD/JPY made an attempt to settle below the support at 149.50 – 150.00 but lost momentum and climbed back above 150.00.

If USD/JPY manages to stay above the 150.00 level, it will move towards the resistance at 151.50 – 152.00. Potential interventions from the BoJ are among the key risks for USD/JPY bulls.

For a look at all of today’s economic events, check out our economic calendar.